MREIT to fatten property portfolio with fresh asset infusion

MANILA, Philippines — MREIT Inc. said Thursday it would acquire more property assets from its parent firm to expand its portfolio.

In a disclosure to the stock exchange, the real estate investment trust (REIT) company of landlord Megaworld Corp. said it is planning to inject seven Grade A office assets into its property holdings.

The new office assets that MREIT would receive from Megaworld have a combined gross leasable area of around 150,500 square meters. In aggregate, these assets generated P1.2 billion of rental income in 2022.

“These properties boast high average occupancy rate of 94% and quality tenants, marking a significant step towards our commitment to deliver sustained growth and value to our investors,” Kevin Tan, company president and CEO, said.

Once the transaction is completed, MREIT’s portfolio will grow to around 475,500 sqm and would bring the REIT company closer to its target of 500,000-sqm of assets under management by the end of 2024.

The fatter property holdings would allow MREIT to reward its investors with bigger dividends.

As a publicly-owned listed company, a REIT is tasked to use proceeds from share sale to purchase and manage income-generating property assets such as malls, offices and warehouses. At least 90% of income from these ventures are required to be declared as dividends for shareholders.

Since its IPO in 2021, MREIT has already injected eight office buildings into its portfolio and grew its value by 25% to P62 billion, following the two sets of previous acquisitions

Shares in MREIT ended the first trading day of June with 1.45% gains.